How much equity is used when purchasing land?

...that’s good :)

Well, our equity is quite high; 20% of it is not little. BUT: we are already afraid that we will still get into trouble. Just the notary fees / tax office fees are huge, but planned within the equity backing. Unfortunately, the other costs (house connection costs, etc.) are also not insignificant. If we have to pay all of these in advance before the loan starts, it could get tight. Well, we’ll see. Thanks for your answer!

...that’s good :)

Well, our equity is quite high; 20% of it is not little.
BUT: we are already afraid that we might still get into trouble. Just the notary fees /tax office fees are huge, but planned within the equity buffer.
Unfortunately, the other costs (house connection costs, etc.) are also not negligible. If we have to pay all of them in advance now, before the loan starts, it could get tight.
Well, we’ll see. Thanks for your reply!

Do I understand correctly that you have already bought and want to build, but the financing is not yet finalized?

No, nordanney, we have not bought yet. The land purchase is imminent, then the house will be built. With our friends, it was such that they had to make advance payments for some house costs (excavation, basement construction, etc.) because the loan was paid out late. That’s what I meant.

Good - for us it was partly like that.
Our construction company has a payment schedule according to which they want to be paid. The corresponding invoices were submitted to the bank and paid.

However, if certain parts of the construction are not handled through the general contractor, you should have enough money in reserve so that smaller invoices can be paid. (or if you still have any additional charges for the service) We then "collected" these and had them reimbursed from the bank again in a larger sum (unless we wanted to pay the invoice from equity from the outset).

With our friends, it was such that they had to make advance payments for some house costs (excavation, basement construction, etc.) because the loan was paid out late. That's what I meant.

The bank will release the money from the loan account to you if you want it. Of course, work already begins (concerning the property) even before the general contractor wants to see money.
The problem is always that the loan starts running as soon as you start drawing on it. That means that at some point you will have to pay the commitment interest.
That is why as a builder you try to pay the small amounts in the thousands of euros from the (specified) equity capital.
The liquid capital, which you still have under the mattress or sock, is used for what was not planned in the calculation, e.g. a high-quality bathtub or other bargains like outdoor lighting, unforeseen expenses ... which the bank has nothing to do with. It does not matter who issues the invoice.

I hope I still have the commitment interest correctly in mind.
Nevertheless, this post should be able to explain the use of equity capital and that you determine when the loan is drawn down.

Regards, Yvonne

Yes, exactly, Yvonne. We have some things done by other companies (excavation, heating for example). You probably need some money to advance.